Citigroup Defends Firing of Former Executive, Citing Performance Issues

Citigroup has responded to a lawsuit filed by Kathleen Martin, a former managing director, by asserting that her termination was due to performance issues rather than her claims of being pressured to mislead regulators. Martin, who joined Citi in 2021 to address data issues, alleges in her lawsuit that Chief Operating Officer Anand Selva instructed her to withhold “critical information” from the Office of the Comptroller of the Currency (OCC) related to the bank’s data-governance metrics.

According to Martin, she was dismissed on September 25, 2023, in retaliation for raising concerns about the alleged cover-up, which she claims was intended to prevent the bank from looking bad in front of regulators. The lawsuit ties these events to a 2020 consent order from the OCC concerning Citi’s data governance.

In its response, Citigroup contends that Martin had already been facing performance issues before the incidents she describes. The bank claims that after receiving her mid-year review in July 2023, Martin reached out to human resources, expressing concern that her job was in jeopardy. Citigroup maintains that Martin did not address the feedback she received, leading to her replacement as interim data transformation chair.

Martin’s attorney, Valdi Licul of Wigdor LLP, welcomed Citi’s response, viewing it as a sign that the case has legal merit. He plans to request depositions from senior Citigroup executives, including CEO Jane Fraser, to demonstrate that Martin was fired in retaliation for her complaints about alleged illegal activities. Citigroup has declined to comment further on the matter.